Company Number: 15128665

Analysis Date: 2025-07-20 16:40 UTC

1. Credit Opinion: DECLINE
   Green Evolution Ltd is a newly incorporated private company with its first financial year ending August 2024. The company’s financials reveal significant concerns: net liabilities of £7,513, a negative working capital position of £9,808, and minimal current assets (£8 cash). These indicators suggest an inability to service debt or meet short-term obligations. The company also has very limited equity (share capital of £1) and no profit reserves to buffer losses. Without evidence of incoming cash flow or external funding, extending credit would be high risk.

2. Financial Strength:
   The balance sheet is weak. Tangible fixed assets stand at £2,295, but current liabilities of £9,816 overwhelm current assets of £8, resulting in a large net current liability. Net assets and shareholders’ funds are negative at £7,513, indicating the company is insolvent on a going concern basis. The company’s capital base is minimal, and accumulated losses exceed the initial share capital. The company’s small scale and start-up status limit financial resilience.

3. Cash Flow Assessment:
   Liquidity is critically constrained. Cash on hand is only £8, insufficient to cover even a fraction of current liabilities due within one year (£9,816). The negative net current assets indicate ongoing cash flow challenges. There is no indication of other short-term liquid assets or receivables. This severely limits the company’s ability to meet immediate financial obligations or service debt.

4. Monitoring Points:

• Improvement in liquidity, especially cash balances and receivables.
• Reduction in current liabilities or restructuring of short-term debts.
• Evidence of growing revenue or profitability to rebuild reserves.
• Any capital injections or external funding to improve equity and working capital.
• Director conduct and management's ability to control costs and grow the business sustainably.